NEWSLINE
Processes & Procedures
Moto, Initiative, Efforts of Bank Behind Self Redevelopment
- Housing Societies prior to era of builders are formed, developed & erected by members by purchasing plots, appointing contractors & experts & arranging finance
- Mumbai Bank, being Apex & parent bank for co-operatives in Mumbai, has introduced a Self Redevelopment Policy in 2011 & revised in Aug 2017 with a view to give maximum benefits of redevelopment to members of co operative housing society
- The policy is to create a social impact in the city coupled with growth of business of Mumbai Bank
- Bank is taking special efforts by appealing Government/MHADA to introduce One Window concept for obtaining various permissions/NOC’s under one roof
- Bank is taking special efforts to introduce / insert special sections for self redevelopment in RERA act
- This presentation is to discuss the ideology of the product
- MHADA societies will get NOC for IOD from MHADA before paying premium on the basis of Comfort Letter from the bank
Self Redevelopment
Redevelopment
- Demolition of old structure and construction of new structure with better facilities, dimensions and amenities
Self Redevelopment
- Redevelopment from resources of existing members with the support of financing agencies and professionals
- Redevelopment with better accountability and transparency
- Redevelopment without interference of any developer
Advantages of Self-Redevelopment
- Profits from the project shared among the existing members of the society
- More profits means extra corpus to be shared in the society
- Extra corpus means less burden of maintenance cost on existing members
- Existing members shall have more say in planning and shall be benefitted with more areas in certain cases
- Customization leads to better planning & utilization of space & dimensions
- Risk pertaining to Developer dependability is eliminated
- Existing members can get professional help in much organized way which helps completion of project in time and saves cost too
Self Development v/s Redevelopment
Risk of Developer not performing gets eliminated
Profits of the project are shared within existing members
More corpus to existing members with professional help
Planning and Design as per existing members
Better customization in design and space
Transparency with the help of professional help can lead to timely completion of project
WHY MUMBAI BANK
Why Mumbai Bank?
- Apex financial entity in co-op credit structure
- Inherent capability of the Management towards resolving procedural delays
- Wide network of branches throughout Mumbai to reach out to interested prospects
- First bank to offer specially designed solutions for self redevelopment projects
- Providing proper framework, infrastructure & support system for societies to carry out the project with minimal hassles
MUMBAI BANK SELF REDEVELOPMENT POLICY
Mumbai Bank – Self Redevelopment Policy
Policy
- Loan approval limit 85 % of project cost or Rs. 50.00 Crores or more as per exposure norms of the bank
- Policy covers every aspect required for redevelopment e.g. TDR cost, experts fees, construction cost, shifting charges, rent , premiums & fees etc.
- At 12.5% p.a. interest with maximum cap of 7 years tenure with 2 years moratorium
- 100% consent from all members
- Conveyance/Deemed conveyance, property card, Index II Project will be monitored by Bank PMC & CA
- Escrow Mechanism : Outflow & Inflow will be routed through these accounts.
- Society plot & projected building will be mortgage to bank
Eligibility Criteria
- Scheme is for member Co-Op housing societies
- Society should have A & B Audit class
- Society should not be defaulter of any bank or government
- Property card, Index II & conveyance should be on societies name
- 100% consent of all members required for self redevelopment
- Title should be clear & Marketable
Various Documents / Permissions Required
- various documents / permissions required to obtain Commencement Certificate from MCGM. There are various stages between Commencement Certificate and Occupation Certificate which can be broadly named as:
- Pre design (Proposal stage)
- Statutory approval – IOD – C.C. stage
- Commencement Certificate above plinth
- Occupation / Completion stage
Pre Design (Proposal stage)
- Deemed Conveyance – Property must be transferred in the name of the Co – operative housing society including PR card.
- PR card in nos. and in words.
- Undertaking of preferably all members (minimum 70%) giving consent for redevelopment.
- Duly notarized and registered MOM of redevelopment proposal by Society.
- Appointment of PMC / Architect to advise and prepare preliminary proposal.
- Proposal duly prepared with respect to prevailing DCR & Government norms.
- DP remarks and related road and survey remarks (MCGM).
Statutory approval – IOD – C.C. stage
- Preparation of plans and complete detailed proposal and submission of the same with relevant documents by the Society i.e Society’s Architect.
- NOC from Chief Fire Officer
- NOC from Electromechanical department
- NOC from Traffic
- NOC from Superintendent of Garden.
- NOC from Pest Control.
- NOC from Assessment department
- NOC from Sewage Department
- NOC from Storm water drain department#
- NOC from Hydraulic – Water supply department.
- NOC from Ward Officer – Estate
- NOC from Road Department
- NOC from MTNL
- NOC / Remarks for concessions from Commissioner / Chief Engineer – DP
- NOC from High rise Committee (if building is above 70 mtrs.) In addition to the above, following NOC’s have to be procured from Government departments:
- NOC from Electric supply authority.
- NOC from Civil Aviation department.
- NOC from Environment department.
Occupation / Completion stage
- In addition to the same Rain Water Harvesting and Lift Inspector’s NOC is required.
- Along with the proposal, various charges / deposits etc. are payable towards scrutiny fee, premium for additional FSI etc. which is listed as below:
- Scrutiny fee
- Development charges
- Additional basement area premium
- Fungible FSI premium
- Staircase and Lift Lobby premium
- Premium for additional 33% area
- Capitation fee towards Fire NOC
Procedure for Loan Sanctioning
- Submission of proposal by the society with all required documents (mentioned in policy) to the bank
- After initial scrutiny by bank, proposal is send to Banks PMC, CA & Solicitor for technical financial viability
- After receiving opinion from experts of bank, appraisal note is put up for sanction to banks BOD
- After approval the same is communicated to society
- After complitation of documentation work, opening loan / escrow account at branch level
- Amount is disburse as per society’s demand on the basis of remarks from banks PMC
- Installment is work out for repayment as per disbursement & repayment period
